Image credit: LinkedIn (PaySafe)
London-based fintech startup Paysafe is a specialised payments platform. Its core purpose is to enable businesses and consumers to connect and transact through the capabilities in payment processing, digital wallet, and online cash solutions.
Paysafe acquires SafetyPay
In a recent development, the company announced that it has signed a definitive agreement to acquire US-based digital payment platform SafetyPay, for $441M (approx €374.7M) in an all-cash deal. The transaction is expected to close in the fourth quarter, 2021.
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With this acquisition, the SafetyPay team will transition into Paysafe, which is headed up by Paysafe e-cash CEO, Udo Mueller. As for SafetyPay’s CEO, Gustavo Ruiz Moya, he will become CEO, e-cash for Latin America and Global Head of Open Banking, reporting to Mueller.
Alternative payment methods
Founded in 2006 by Barbara Bibas and Manuel Montero, SafetyPay is an online payment solution that enables clients to make online purchases and pay directly through their local bank account.
Its core mission is to drive online payment inclusion for the entire Latin American population and enable Latin American and European merchants to expand their sales into new international markets. The platform aims to enable millions of consumers to use alternative payment methods (APMs), most notably bank transfer and e-cash solutions, to make online purchases.
SafetyPay is operational in 11 Latin American countries (with additional coverage in Europe) and operates via a network of banks, with over 90 per cent bank coverage, and over 180,000 cash collection points. The company also has an additional network of over 380 bank partnerships, and another 20,000+ collection points in seven European countries.
It is already serving nearly 300 merchants primarily in the travel, entertainment, and digital goods industries. The company is backed by various venture capitalists, including the International Finance Corporation, Armilar Venture Partners and Escort Investments.
Aim of this acquisition
With the latest development, Paysafe strengthens its strategic foothold in Latin America, as prior to this, the company acquired Peruvian payments platform, PagoEfectivo.
Once the transaction is completed, Paysafe will have scale and a presence in the Latin American e-commerce market, where merchants and consumers are showing an increasing use of open banking and e-cash solutions to transact online. And now, with this acquisition, Paysafe’s e-cash business will be able to offer e-cash and open banking solutions in over 60 countries with over one million distribution points.
Furthermore, as SafetyPay is connected with more banks in Latin America than any other payments provider, Paysafe is positioned to capture a share of the nascent open banking market by integrating further Paysafe services and solutions – including its digital wallet and gateway capabilities.
Speaking on the development, Philip McHugh, CEO of Paysafe, says, “SafetyPay has successfully built a market-leading payment platform that has become the de-facto open banking solution for Latin America. Furthermore, by combining the capabilities and open banking network of both SafetyPay and PagoEfectivo with our existing solutions in processing, digital wallets and e-cash, along with our deep expertise in specialised verticals such as iGaming, travel and digital goods, we can become the true market leader in the region and provide merchants with unique and powerful combinations to grow their business.”
About Paysafe Limited
Paysafe Limited is a specialised payments platform. The platform’s solutions are geared toward mobile-initiated transactions, real-time analytics, and the convergence between brick-and-mortar and online payments.
With over 20 years of online payment experience, an annualised transactional volume of $92B in 2020, and approx 3,400 employees located in 12+ global locations, Paysafe connects businesses and consumers across 70 payment types in over 40 currencies around the world.
Paysafe’s original product, paysafecard, uses a 16-digit PIN and enables customers to shop online without using an account or credit card, protecting their confidential financial information.
In 2018, the paysafecard team developed Paysafecash allowing customers to shop online first and then pay securely for their purchases with cash at convenient, nearby payment points. Paysafecash is already available in nearly 30 countries.
In 2020, paysafecard and Paysafecash reached a transaction volume of more than $4.6B.
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